KVGB registers net profit of Rs 95.17cr

The Karnataka Vikas Grameena Bank (KVGB) has registered a 50.5 per cent rise in its net profit at Rs 95.17 crore it recorded during fiscal 2010-2011 compared to the previous year. Its total business went up 20 per cent to Rs 9,047 crore over the previous year.

KVG Bank chairman K P Muralidharan told reporters that the bank’s capital plus reserves have now risen to Rs 711.08 crore with a clientele base of 4.7 million.

The total deposits stood at Rs 5,406 crore as on March 31 last, registering a growth of 21.32 per cent compared to last year. Through its network of 451 branches spread over nine districts of Karnataka, the bank has disbursed loans to the tune of Rs 2,178 crore this fiscal, registering a growth of 43 per cent. The gross advances have increased to Rs 3,641 crore achieving a growth rate of 18.14 per cent, the chairman said.

“The percentage of Gross NPAs to total outstanding advances as on March 31, 2011, has come down to 2.52 per cent from 3.06 per cent as on March 31, 2010. The bank has fully provided for the entire NPAs and hence the net NPA level is nil” he asserted.

The thrust of the bank is on priority and agriculture sector and during the year Rs 1,453 crore was disbursed to the priority sector. Of the total loans and advances, the share of the priority sector advances stood at 83 per cent. The bank had disbursed Rs 1,001 crore to agriculture and Rs 255 crore to the SME sector. The agricultural loans stood at Rs 2,353 crores, forming 65 per cent of the total advances.

The bank has disbursed a crop production loan of Rs 850 crore implementing the interest subvention benefits of the Union government and interest subsidy of 3 per cent for loans up to Rs 50,000 of the State Government.

Muralidharan stated that the bank had opened 26 new branches this fiscal taking the total tally of branches to 451. The bank intends to add 35 new branches this year.

The bank has implemented Core Banking facility across all its 451 branches.